[Special Stock] "Tariff Bomb if Products Not Made in the US"... Kencoa Aero Expands Production Again Amid Surging Orders

Amid U.S. President Donald Trump's emphasis on domestic production, Kencoa Aerospace is showing strong performance. The role of Kencoa Aerospace's U.S. production base is expected to become increasingly important in the journey to colonize Mars. Orders are pouring in for California Metal and Kencoa USA, which supply special materials to space companies. The subsidiary Kencoa USA is the only 'Tier 1' partner in Korea. Major clients include Lockheed Martin, Boeing, Pratt & Whitney, and Blue Origin. California Metal supplies aerospace materials to NASA, SpaceX, and others.

As of 10:29 AM on the 24th, Kencoa Aerospace was trading at 12,300 KRW, up 760 KRW (6.59%) from the previous trading day.

Kencoa USA plans to begin construction for expansion within this year, aiming to double its existing production capacity. Following California Metal's completion of relocation to secure double production capacity in Q2 of last year, further investment in expansion within the U.S. is ongoing.

A Kencoa Aerospace representative stated, "We need to expand within this year," adding, "Due to the nature of the aerospace industry, we cannot disclose many details to maintain confidentiality."

According to Daishin Securities, as of the end of 2023, Kencoa Aerospace's order backlog amounts to approximately 850 billion KRW, which is nine times its 2023 revenue of 91.1 billion KRW. The company is expanding its factories in response to the increasing orders.

On the 23rd (local time), President Trump delivered a keynote speech via video at the World Economic Forum held in Davos, Switzerland, emphasizing revitalization of the U.S. economy and job creation. President Trump said, "My message to companies worldwide is very simple: come to America and make your products here. We will apply lower taxes than any other country on Earth." He added, "If you do not make products in the U.S., that is your right," but pressured, "You will have to pay various tariffs."